1. After having applied and been denied by two lenders, the student/borrower must provide HESC with these loan denials along with a letter requesting an LLR loan. If the student/borrower has a prior loan, one denial must be from the lender which made that loan.
  2. HESC sends the student/borrower an LLR Application Master Promissory Note and a letter explaining the application process. (See Attachment #1.) The letter will also advise the student/borrower that the completed LLR Application Master Promissory Note should be returned to HESC within 45 days from the date of HESC's letter.
  3. The student/borrower completes the Borrower Section of the LLR Application, signs the Master Promissory Note, retains the Borrower copy and forwards to the school the Lender, HESC and School copies.
    • The school completes the School Certification Section of the LLR Application, retains the School's copy and returns to the student/borrower the Lender and HESC copies.
    • The student/borrower sends to HESC the Lender and HESC copies.
  4. Upon receipt of the completed LLR Application Master Promissory Note, HESC will to contact the student/borrower by telephone to complete pre-loan counseling. If HESC is unable to contact the student/borrower, a letter will be sent advising the student/borrower that it is essential that he/she telephone HESC within 15 days from the date of the letter to complete pre-loan counseling and avoid delay in the processing of the LLR Application. (See Attachment #2.)
  5. If no response is received from the student/borrower within 20 days, a second request letter will be sent.
    • HESC will hold the LLR Application until the 60th day following the expiration of the period of enrollment. If the student/borrower fails to respond by that date, HESC will cancel the LLR Application.
    • If the letter(s) are returned to HESC as undeliverable, HESC will not process the loan application.When pre-loan counseling is complete, if the student/borrower wants to think about whether or not to take out the loan, a letter will be sent advising the student/borrower that HESC will hold the application until the student/borrower contacts HESC as to his/her decision. (See Attachment #3.)
  6. If the student/borrower decides to have the LLR Application processed by HESC after 60 days from receipt of the application, HESC will verify the information on the application with the school before resuming any processing.
  7. If the loan is approved, HESC sends electronic notification to the student/borrower of the loan guarantee with a link to the HESC Web site, and sends to the lender the Notice of Guarantee and the Lender copy of the LLR Application Master Promissory Note.